The Emerald Queen Casino & Hotel in Tacoma , Washington celebrates the

Puyallup Tribe ’ s rich heritage

However , the legal requirements around slot machines here , and part of the region ’ s dependence on international customers , make the state a one-of-a-kind — and potentially disadvantaged — gaming marketplace . In this article , we examine the current state of the dynamic tribal gaming industry in Washington and consider how a variety of elements are impacting the market .

Tribal gaming in Washington state dates to 1992 , when the Lummi and Tulalip tribes opened their first , tables-only casinos north of Seattle . Since then , the industry has exploded with the state ’ s 29 federally recognized tribes now all holding Class III gaming compacts . Currently , 22 of those tribes operate 28 casinos , totaling more than 30,000 slot machines , roughly 600 table games , and nearly 3,000 hotel rooms across the state .

Outside of these casino facilities , tribal operators also compete with 41 commercially owned , house-banked card rooms ( operating roughly 550 tables ). These are mostly located around Seattle and Tacoma , but also spread across the state in Spokane , Yakima and East Wenatchee , among other cities .

The following table highlights the tribal gaming revenue from the Portland Region of the National Indian Gaming Commission , which accounts for the revenue generated in Alaska , Idaho , Oregon and Washington . Of these four states , Washington contains the highest concentration of casino facilities . From 2017 through 2022 , the region has grown from almost $ 3.4 billion to roughly $ 4.5 billion .

Lottery Model

A unique element of the Washington gaming market is the state ’ s Tribal Lottery System , created in 1998 to allow for gaming devices modeled after the state lottery . According to the Washington State Gambling Commission , the Tribal Lottery System is “ a secured network comprised of servers , computers , player terminals , firewalls , switchers , cashier terminals , kiosks , and peripheral devices that communicate as a whole to provide the gambling experience in a casino .”

The system includes the casinos ’ accounting system , the central determination system , and the player terminals ( slot machines ). As part of the system , “ electronic scratch ticket ” games became permissible — thus opening the door for a slot-like product — but must go through the state ’ s certification process . As a result , slot manufacturers do not put the same number of resources into producing Washington-specific slot machines as they do with traditional Class III machines , limiting the type of slot product available in relation to other markets .

Based on conversations with sources intimately familiar with the Washington slot market , the system does not have many negative competitive impacts around the Seattle and Tacoma region , where out-of-state competition is non-existent . The limitation of the system is more challenging to tribes in eastern and southern Washington , closer to Idaho and Oregon , where compacts allow for the traditional Class III machines seen nationwide .

One example , as noted by Lucky Eagle Casino & Hotel CFO Casey Riddle , is seen with Dragon Link , the highest-performing slot machine that is currently not available in either Class II or Washington Class III . Riddle points out that the limitation of the Washington market “ makes it difficult to be competitive with adjacent states .”

10 TRIBAL GOVERNMENT GAMING 2024